Global Forest Product Chains

This 2008 report by the International Institute for Sustainable Development (IISD) analyzes global forest product commodity chains with China as the central manufacturing hub. It examines how China imports primary raw materials from developing nations—specifically focusing on case studies in Mozambique and Russia—and exports finished wood products to developed Western markets. The report identifies a systemic failure in sustainability where capital from timber sales often fails to return to forest regeneration, leading to asset-stripping and illegal logging, exacerbated by poor governance in supplier countries and irresponsible corporate behavior. It provides a series of policy recommendations for the Chinese government to transition toward sustainable procurement, capacity-building in supplier nations, and international leadership in carbon accounting and legality verification.

• China occupies the central manufacturing node in a global forest product commodity chain, importing primary raw materials from developing countries and exporting finished products to developed Western nations.
• China's reliance on imported wood has inadvertently exported unsustainable production problems to other countries, creating risks including insecure fibre supply, rising costs due to export taxes in countries like Russia, and a loss of market reputation in Europe and North America.
• In Mozambique, specifically Cabo Delgado Province, forest management is characterized by chaos and over-logging, driven by a lack of transparency in use rights, insecure tenure, and institutional failure to enforce laws.
• The Mozambican timber supply chain is plagued by severe labor violations and hazardous working conditions in sawmills, where workers lack personal protective equipment and formal contracts, and are often paid subsistence wages.
• In the Russian Far East (RFE), forest sustainability is threatened by poor tenure arrangements, significant under-funding of forest management, and widespread corruption that facilitates illegal logging.
• A critical failure in the global commodity chain is the lack of financial feedback to the resource base; in countries like Russia and Mozambique, revenue from timber sales is often diverted to bribery or rent-seeking rather than forest regeneration.
• Trade with New Zealand demonstrates a positive model where strong governance and a high proportion of privately owned plantations (over 90%) allow for the conservation of natural forests while meeting Chinese demand.
• Chinese trade policies, including zero import tariffs on primary products like logs and sawnwood, have encouraged the over-importing of raw materials and discouraged the development of domestic processing industries in supplier countries.
• The report recommends that the Chinese government provide financial and technical aid to supplier countries to build forest governance and management capacity, specifically through the Sino-African Development Fund.
• To improve market sustainability, the report suggests China implement a sustainable wood product procurement program and adjust VAT policies to eliminate refunds on processed wood products unless they are certified sustainable.
• China is encouraged to join international initiatives such as the EU's Forest Law Enforcement, Governance and Trade (FLEGT) and the Reduced Emissions from Deforestation and Forest Degradation (REDD) initiative.

APA

Sun, C., Chen, L., Chen, L., Han, L., & Bass, S. (2008). Global Forest Product Chains. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/china_sd_forest.pdf

Chicago

Sun, Changjin, Liqiao Chen, Lijun Chen, Lu Han, and Steve Bass. Global Forest Product Chains. International Institute for Sustainable Development, 2008. https://www.iisd.org/system/files/publications/china_sd_forest.pdf.

Wikipedia

{{cite report |last1=Sun |first1=Changjin |last2=Chen |first2=Liqiao |last3=Chen |first3=Lijun |last4=Han |first4=Lu |last5=Bass |first5=Steve |title=Global Forest Product Chains |publisher=International Institute for Sustainable Development |date=June 2008 |url=https://www.iisd.org/system/files/publications/china_sd_forest.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sun2008global, author = {Sun, Changjin and Chen, Liqiao and Chen, Lijun and Han, Lu and Bass, Steve}, title = {{Global Forest Product Chains}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = jun, url = {https://www.iisd.org/system/files/publications/china_sd_forest.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }